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CIVH and Maziv to Defend Vodacom Merger Amidst Competition Commission’s Concerns

August 15, 2023
1 min read
Author: Aayushya Ranjan

Community Investment Ventures Holdings (CIVH) and Maziv have responded to the South African Competition Commission’s recommendation to block the proposed strategic stake acquisition of Maziv by Vodacom. The parties view this recommendation as a stage in the process and plan to present their case for approval to the Competition Tribunal.

The proposed merger between Vodacom and CIVH, forming the entity Maziv, aims to merge their fibre networks, with Vodacom owning a 30% stake in Maziv through a R13.2-billion purchase deal. CIVH and Maziv emphasize the positive impact of the merger, including making Vodacom’s fibre assets commercially available and extending fibre infrastructure to approximately 1 million households in lower-income areas, creating jobs, and supporting small to medium enterprises.

The Commission’s concerns regarding competition and preventing or lessening competition in various markets led to the initial recommendation against the merger. However, CIVH and Maziv believe that the concerns can be addressed through conditions and commitments. The proposed merger, if approved, would contribute to expanding fibre infrastructure and addressing capital investment challenges in the current economic climate.

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